Annual Report Predicts Continued Foodservice Industry Growth

By: Kerry Pipes
Published: March 14th, 2023

The National Restaurant Association’s (NRA) annual State of the Restaurant Industry report is out and among its findings and predictions is one staggering number - the restaurant and foodservice industry could reach nearly a trillion dollars in sales this year.

The organization’s annual report is based on surveys of restaurant owners, operators, chefs, and consumers and examines key factors impacting the current state of the economy, operations, workforce, and food and menu trends to forecast sales and market trends for the year ahead.

“The restaurant and foodservice industry is fueling the American economy. Our hiring rate and wage increases are outpacing the overall private sector, and this year our industry will contribute nearly $1 trillion to the economy,” said Michelle Korsmo, president & CEO of the National Restaurant Association. “The 2023 State of the Restaurant Industry report offers an in-depth analysis of what’s driving this growth and the tremendous opportunities for restaurant owners, operators, and team members who want to grow their businesses and expand their careers.”

Here are some key findings from the report:

• The foodservice industry is forecast to reach $997 billion in sales in 2023, driven in part by higher menu prices.
• The foodservice industry workforce is projected to grow by 500,000 jobs, for total industry employment of 15.5 million by the end of 2023.
• For 70% of operators, business conditions have settled into or are on the path to their new version of normal.  
• 84% of consumers say going out to a restaurant with family and friends is a better use of their leisure time than cooking and cleaning up.
• 92% of operators say the cost of food is a significant issue for their restaurant.
• In 2023, 47% of operators expect competition to be more intense than last year.
• Among fine-dining restaurants that offered delivery during the pandemic, 79% added it for the first time; 8 in 10 of those plan to continue.
• Two-thirds of adults say they’re more likely to order takeout food from a restaurant than they were before the pandemic.
• Off-premises-only locations are expected to grow in popularity; more than 4 in 10 limited-service operators think they will be more common this year.
• Between 2023 and 2030, the foodservice industry is projected to add an average of roughly 150,000 jobs a year, with total staffing levels projected to reach 16.5 million by 2030.
• Only 1 in 10 operators think recruiting and retaining employees will be easier in 2023 than it was in 2022.
• 58% of operators say using tech and automation to alleviate labor shortages will become more common in their segment in 2023.

You can download the full 2023 State of the Restaurant Industry Report here.

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